FLS Aerospace sale finalised

FLS Industries has today finalised the sale of FLS Aerospace to SR Technics, the Swiss aircraft maintenance company. As announced on 9 February 2004, the selling price is approximately DKK 350m. As part of the agreement, the buyer has taken over the company's pension obligations and liabilities deriving from the restructuring of FLS Aerospace.

Note 32 to the FLS Industries Annual Report reads as follows: "In connection with the disposal of undertakings normal guarantees are issued to the acquiring undertaking. Provisions are made for estimated losses on such guarantees."

In connection with this sale, a number of guarantees have been issued whose amounts and risks have been carefully assessed and provided for already when the sale was announced on 9 February 2004 and in drawing up the 2003 Annual Accounts for FLS Industries. The assessment of the total risks deriving from guarantees is the same today as stated in the 2003 Annual Report.

FLS Industries A/S
Corporate Public Relations